net asset value of regulated funds under administration
alternatives represent 84% of our overall funds business
formed since their launch in 2017
The industry has a net asset value of £361 billion and a total of 844 regulated collective investment funds* established. Currently, figures for the increasingly popular Jersey Private Fund are not included, meaning the actual net asset value figure is much higher.
Jersey has attracted a significant number of venture capital, private equity, mezzanine, real estate, infrastructure and hedge funds. For example the net asset value of single class private equity funds under administration in Jersey stands at 136 billion*
Providing significant flexibility for investor needs, Jersey continues to improve laws and regulations in order to provide better choices for investors. Some key facts include:
- The net asset value of regulated funds grew by £4.8bn during the fourth quarter of 2019.
- It now stands at £361bn, with strong performances in private equity (£136bn) and hedge (£51bn)
- Significant money is being raised from a wide range of EU countries. Jersey has seen an annual increase of 9% in fund managers using Jersey to market funds into Europe (source: JSFC)
With its political and fiscal stability and a no change outlook from a regulatory, legal or economic perspective, Jersey is a destination of choice for fund managers choosing where to locate either their funds or management company. Click a segment of our ‘wheel’ to explore the key drivers behind fund managers selecting Jersey.
Jersey has a legal, tax and regulatory framework, which supports the continued functioning of the Jersey fund management and services industry under the Alternative Investment Fund Managers Directive.
Jersey was the first ‘third country’ to offer a fully compliant opt-in regime under AIFMD, meaning that Jersey will be able to offer a passporting option under AIFMD as soon as it becomes available to third country managers.
A Jersey manager can establish different Jersey funds to access:
- The EU through National Private Placement Regimes (NPPRs); and
- The ‘rest of the world’ through business as usual
You can find out more on where investors in Jersey funds are currently based in the KPMG report, ‘Analysis of the Jersey Alternative Funds Sector Investor Base’.
Jersey has a fully flexible funds regime and, unlike other jurisdictions, offers easy and cost-effective access to EU investors via marketing within the EU through National Private Placement Regimes (NPPRs). As Jersey is not an EU Member State, it is not subject to the scope of the Alternative Investment Fund Managers Directive (AIFMD) when targeting investors outside the EU.
To see how well NPPRs are being used in Jersey, see our video below or view our interactive map showing which EU countries we work with.
Find out more about the Jersey regime by reading our factsheet.
With more than 13,700 highly skilled and experienced finance industry professionals, over 2,000 of which are employed in fund management and legal services, Jersey offers an exceptionally large pool of expertise, including a wealth of professional non-executive directors with extensive knowledge of funds across a variety of asset classes.
Jersey is also able to offer clients access to a wealth of expertise from Jersey service providers, including fund administrators, banks, custodians, depositories, accountants, tax advisers and legal professionals, who have the knowledge and international connections to deliver perfectly tailored products and specialist vehicles, whatever the investment objectives.
A range of national and international financial services firms are based in Jersey. Visit our Business Directory for a list of firms operating in Jersey or to search for a specific organisation.
The international regulatory and legislative landscape is changing all the time. Jersey’s funds regime reacts with agility, offering managers a full spectrum of regulatory options. Lawyers work closely with counterparts in all of the world’s major centres, including London, the US, China, India and the GCC, to deliver structured products and specialist vehicles that meet a whole range of financial and investment objectives.
Jersey fund vehicles may be approved in as little as 48 hours by the regulator, the Jersey Financial Services Commission (JFSC), which is responsible for the regulation, support and development of the finance industry.
The funds industry is constantly evolving, and Jersey’s fund administration firms and legal professionals are at the forefront of a range of emerging trends. Take alternative investments such as venture capital, private equity, real estate and hedge funds for example. Jersey has worked hard to develop expertise in these areas, as well as with funds in cutting-edge asset classes like mezzanine and infrastructure.
Jersey remains focused on developing its funds regime and on providing innovative solutions. Recently introduced, the Jersey Private Fund consolidates and streamlines Jersey’s private fund offering, enabling funds with up to 50 investors to take advantage of a fast-track authorisation process and lighter ongoing regulatory requirements. A new, manager-led, Jersey Alternative Investment Fund is also in the pipeline.
Jersey has been at the forefront of funds services for more than 50 years. In that time, the jurisdiction’s track record in the structuring, management and administration of fund vehicles has given it a world-class reputation, serving primarily institutional, specialist and expert investors.
The International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD) and the European Union (EU) have all endorsed Jersey as a top international finance centre. A major report published by MONEYVAL underlines Jersey’s ability to combat financial crime through a sophisticated system of capturing ownership information about entities and structures in the jurisdiction.
Jersey’s reputation as an international finance centre (IFC) of excellence has been endorsed by independent bodies and institutions of the highest standards – see our Awards and Accolades. Our reputation as a quality IFC supports our work in a range of markets around the world, building better futures for global partners and investors.
Fund managers are putting substance at the heart of the decisions they make.
When it comes to substance, Jersey offers certainty. In March 2019, Jersey was assessed as a cooperative jurisdiction by EU finance ministers regarding the business taxation initiative from the EU Code of Conduct Group (COCG). Although funds are not subject to the substance requirements, where there is a Jersey resident company in the structure, such a company would be required to meet the criteria.
Jersey’s appeal as a jurisdiction of substance is evident not only through the presence of more than 120 fund promoters doing business on the Island, but through the number of high-profile manager relocations in recent years.
See our Jersey: Certainty and Substance factsheet for more information
Jersey is a tax neutral jurisdiction for international business. This makes Jersey’s funds solutions far less complex than in other jurisdictions in that it offers:
a simple tax neutral regime – operational flexibility, with less complexity
no necessity for complex tax structuring
This simplified system means that, while the fund does not pay tax, investors from various countries with their individual tax systems will all pay the correct amount to their respective governments. Other onshore jurisdictions can offer a comparable arrangement, but require significantly more red tape, and ultimately cost, to orchestrate.
Jersey’s own democratically elected Parliament and judicial system provides us with stability and independence.
Jersey has never been part of the EU, but has excellent, long-standing bilateral relationships with the EU’s Member States and established European market access arrangements for its asset management industry. These will not be impacted by the major initiatives impacting the industry, most notably, Brexit.
The majority of Jersey’s funds have a large base of UK investors, and the British Government has already stated that the relationship between the UK and Jersey will not be impacted by Brexit.
Therefore, Jersey also provides a ‘no change’ solution for access to UK investors. This unique position sets Jersey apart.
Discover more about Jersey’s Constitution.
If you look at Jersey’s credentials, it’s clear that the Island meets every one of these criteria. These credentials, coupled with case studies from Jersey-based service providers and local organisations, show why Jersey is the clear choice for sustainable finance.
*Statistics correct as at December 2019